New Paltz district again outlines objections to Wilmorite project

Tuesday

Jul 8, 2014 at 2:00 AMJul 8, 2014 at 1:59 PM

JEREMIAH HORRIGAN

NEW PALTZ — The New Paltz School District has reiterated its opposition to a payment in lieu of taxes as proposed by the development company that wants to build a $60 million residential complex for SUNY New Paltz.

The board issued a statement Monday outlining its objections to the PILOT that has been proposed by the developer, Wilmorite, for its Park Point housing development.

The issue of the company's tax burden came to a head last month when the company filed a lawsuit, contending the town Planning Board overstepped its legal role by refusing to approve the project unless the company paid its property taxes in full.

The difference is about $1 million yearly. The school district would have to share any payment with the town and the county.

In its statement, the board said it first objected to “all PILOTs” in a resolution last December.

The board said a PILOT would effectively be a wash item because under the state's property tax cap, PILOT funds cannot be treated as new money but would have to be offset by budget cuts elsewhere.

Only a rare 60 percent super-majority” budget vote by residents will allow a district to exceed its tax cap. The PILOT also poses stresses on the district without reimbursing it for resulting costs, the statement said.

The board contends an increase in housing stock will likely increase the district's K-12 enrollment without adding any new net revenue to the tax base.

The district is already bleeding from having to cut 60 employees since 2008, the statement said, while a plethora of unfunded mandates have forced it to deplete its reserve funds. Increasing enrollment under such conditions, the statement says, could have dire effects on the instructional quality and even safety of the district's students.

“We believe that there is strong likelihood for harm while under the tax-cap legislation.”Wilmorite senior attorney Tom Daniel responded to the board's statement Monday by saying that since Park Point is student housing, it will have “little or no impact on the school district.”

Daniels dismissed as “a hypothetical situation” the board's contention that a decrease in housing stock resulting from the project will cause service and financial problems. Superintendent Maria Rice did not return a request for comment Monday.